Pressures are evenly split between compensation, which makes up the bulk of employer costs, and benefits at respective quarterly increases of 0.7 and 0.8 percent and year-on-year increases of 2.5 and 2.4 percent.
With the unemployment rate at 4.2 percent, there's not much slack, if any at all, left in the labor market which points to a possible flashpoint for wage inflation. Today's report is certain to be discussed at this week's FOMC meeting with wage inflation a possible topic for the FOMC statement.
Recent History Of This Indicator:
Second-quarter wage and benefit costs slowed to 0.5 percent but they didn't completely offset the first quarter's 0.8 percent surge. Expectations for the third quarter's employment cost index is an imposing 0.7 percent quarter-to-quarter gain. The low rate of unemployment, at only 4.2 percent, is a warning signal for rising employer costs.
Second-quarter wage and benefit costs slowed to 0.5 percent but they didn't completely offset the first quarter's 0.8 percent surge. Expectations for the third quarter's employment cost index is an imposing 0.7 percent quarter-to-quarter gain. The low rate of unemployment, at only 4.2 percent, is a warning signal for rising employer costs.
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